Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/4/2012

China - Tax treatment of Hong Kong and Macau individuals 

June 4:  The State Administration of Taxation issued guidance to address certain double taxation issues that are encountered by Hong Kong and Macau tax residents (individuals) who perform their employment duties in mainland China.

Announcement [2012] No. 16 (26 April 2012) is effective 1 June 2012 and applies with respect to employment income earned from this date forward.


With the increasing number of Hong Kong and Macau residents performing employment duties in mainland China in recent years, double taxation due to the differing income-sourcing rules being adopted by mainland China and Hong Kong / Macau has become an emerging issue. Announcement 16 is intended to address some of these issues.


To read a May 2012 report prepared by the KPMG member firms in China and Hong Kong: Hong Kong and Macau tax residents may be taxed favourably in mainland China (PDF 318 KB)




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1801 K Street NW
Washington, DC 20006.

 

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